OKR vs KPI

Lately, there has been growing confusion between two terms commonly used for setting goals: OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators). In this article, we explain their fundamental differences and how to use them effectively to achieve your objectives.

What Are OKRs and KPIs?

OKRs and KPIs are two distinct methodologies for goal-setting. OKRs help define specific and ambitious objectives, while KPIs track progress through measurable performance indicators.

• OKRs focus on setting goals that push the team forward and can be achieved through key measurable results, typically long-term strategic goals.

  • Example: An OKR could be “Improve customer retention”, with key results such as “Implement a loyalty program”.

• KPIs, on the other hand, are metrics that monitor performance and track daily progress toward these goals.

  • Example: A KPI for customer retention could be “Reduce churn rate by 10%”.

How We Use OKRs and KPIs Together

At Madvelous, we leverage both OKRs and KPIs to ensure a complete and real-time performance overview for our clients. With our advanced digital analytics and reporting system, we not only track key business metrics but also provide clear, actionable insights, making performance evaluation easier and more effective.